Rother District Council Agenda Item:
Scrutiny Committee - Asset Management Sub-Committee
Date - 5 August 2003
Report of the - Director of Resources
Subject - Comments of the Government Office for the South
Recommendation: It be RESOLVED that Members note the comments of the
Government Office for the South East and views are sought on the draft Capital
This report supports the Key Aims of Improving Service Performance in a Cost
Effective Way and Supporting and Promoting Regeneration and Employment.
Head of Service: Robin Vennard
1. At its previous meeting, this Sub-Committee agreed that consideration would
be given to the feedback received from the Government Office for the South
East (GOSE) in relation to the Council’s Capital Strategy and Asset
2. Attached at Appendix A is a copy of the letter and attachments received from
GOSE which have been taken into account when preparing the 2003 Capital
Strategy and Asset Management Plan. In addition attached at Appendix B is a
copy of the guidance for 2003, which has been used for the basis of these
documents. Reported elsewhere on this agenda is the 2003 Asset
Management Plan approved by Cabinet on the 21 July.
3. A draft copy of the 2003 Capital Strategy which will form the basis of
consultation with Overview and Scrutiny Committees and Cabinet has been
circulated separately to Members for their comment and views. The main
changes from the 2002 strategy include:
• Being updated to reflect the new Council aims.
• Greater use of examples of capital investment and the benefits of
• Reference to the procurement strategy approved by Cabinet on the 21
• Improvements to the scheme appraisal methodology.
4. There has been consultation with GOSE at various times during the process
of re-writing the Capital Strategy. Officers have drafted the 2003 Capital
Strategy with the objective of meeting the GOSE assessment criteria and
Members will need to bear this in mind when suggesting changes. I am
hopeful that the issues in the 2002 document outlined by GOSE in the
feedback process have now been addressed for 2003.
Director of Resources
Risk Assessment Statement
Failure to adopt a Capital Strategy may lead to poor asset management planning
ppa0308t - Comments of the Government Office for the South East
Mr D Stephens Surrey, East & West
Chief Executive Sussex Area Team
Rother District Council Bridge House
Town Hall 1 Walnut Tree Close
Bexhill on Sea Guildford
East Sussex TN39 3JX GU1 4GA
Switchboard: 01483 882255
Tel: 01483 882 385
Fax: 01483 882 284
19 November 2002
Assessment of Asset Management Plan and Capital Strategy
I am writing to let you know the outcome of the assessments of your Capital Strategy and
Asset Management Plan (AMP). This information is being sent now so that you know, where
relevant, of the information being fed into the "Use of Resources" block in your
Comprehensive Performance Assessment (CPA).
Information on performance of the other Single Pot assessments will follow with your
allocation in December as per the original timetable.
Full feedback on your AMP and Capital Strategy assessments will be sent to you by 20
Capital Strategies and Asset Management Plans
We have assessed Capital Strategies and Asset Management Plans in line with the criteria
published in the Single Capital Pot Guidance 2002 (Part 2) – Assessment of Capital
Strategies and Asset Management Plans”.
The assessments for your authority are:
Plan Assessment Justification
Capital Strategy Satisfactory Did not fully meet
secondary criteria 2, 5, 7,
8 and 9.
Asset Management Plan Satisfactory Did not fully meet
secondary criteria 1, 4, 5,
8, 10, 14, 15, 18, 19, 21,
24, 25 and 26.
In line with the broader initiative to ease the plan burden on local authorities, the requirement
to submit capital strategies and asset management plans to Government Offices for
assessment will be relaxed for those authorities whose submissions have been assessed as
‘good’ this year.
These authorities will need to continue to produce capital strategies for their own purposes,
in particular as a means of consulting and informing stakeholders. Once the new prudential
system of capital finance is introduced, the capital strategy will become part of the annual
budget setting process, bringing together the strategic assessment of the state of the
authority's present assets, investment needs, opportunities and priorities, and setting that
alongside its available capital resources. It will include the assessment of affordability of the
authority's proposed investment made under the prudential code and the resulting prudential
indicators and limits.
If you have received a good standard in this year's Asset Management Planning
assessment, you will no longer need to make detailed annual submissions. However, you
will still be asked to provide some basic statistical information, comprising property
performance indicators and key data on asset numbers, value and condition. This will be
used to inform decisions about local authority investment needs and priorities in spending
Evidence of good use of assets will continue to feed into CPA judgements on use of
resources in future years.
Any queries relating to these assessments must be raised in writing to me at the above
Head of Housing and Communities
Rother District Council
Capital Strategy (CS) Assessment
2002 - Satisfactory
• Capital Strategy sets out the main capital expenditure plans, linked to corporate
aims, and acknowledges importance of, and commitment to, partnership-
working. Performance management framework being developed and Capital
Strategy should set out how, within this system, capital projects and the capital
programme are measured to ensure capital is deployed to achieve
service/financial objectives. Examples of consequent service improvements and
delivery sought would help demonstrate this.
Strengths and areas to develop
1. Primary Requirements
• Capital Strategy, born out of corporate business planning process, aligns capital
spending with 5 corporate aims and service objectives, and links to other
strategies, for example, SEEDA taskforce plan and Community Strategy (look
forward to detail of how Council’s capital supports specific objectives/projects in
• Good explanation of key aspects of capital expenditure with figures linked to
funding tables. Good examples of levering money from other organisations and
using resources to pump-prime regeneration work - scope to outline the specific
outcomes of this and the contribution to achieving certain objectives.
• Clear criteria for prioritising capital project proposals includes contribution to
corporate/service objectives and financial implications. Would be helpful to set
out the scoring mechanisms that are applied, if any, and demonstrate that
capital/asset aspects of Best Value Reviews are picked up and
recommendations feed into the Capital Strategy.
• Stakeholder and Community consultation processes are summarised.
Outcomes of the Capital Strategy consultation exercise should be seen to
influence the Capital Strategy.
• Broad range of partners engaged to deliver priority objectives, including local
authorities, Registered Social Landlords, private sector and voluntary
organisations. Would welcome reference to the partners with whom ‘A Safe and
Health District’ is being taken forward.
2. Secondary Requirements
• Headline data given to justify capital priorities and Strategy indicates the funding
shortfalls. Would benefit from a clear statement of the approach to PPI/PFI.
Good reference to where a range of external funding has and will be sought.
• Alternative procurement options are considered and employed. Pleased to note
that Corporate Procurement Strategy is being developed (timescale unclear) and
look forward to seeing outcomes of this.
• Committed to joint working and project implementation with neighbouring
authorities and other organisations, for example, commissioning study of
Coastline Protection. An indication of how such joint work and investment is co-
ordinated would provide context.
Performance Measurement and Monitoring
• Pleased to note corporate/service outputs are set for capital projects to ensure
contribution to priority goals (would be helpful to provide examples). Formal
reporting process monitors financial outputs. The process of evaluating project
outcomes and benchmarking with other projects is absent. No reference to how
benchmarking activities influence development of capital.
• Developing new performance management framework. Strategy would benefit
from clear explanation of how performance results of capital programme as a
whole, and individual capital projects, are used to improve services and delivery.
Scope to explain how project implementation (cost, time etc.) and the
effectiveness of grants and partnership are measured.
• Mechanisms for reporting the progress of projects within the Council are
explained, but external communication of project performance, to stakeholders
and partners, is not clear.
• Capital programme should include 2005/06 plan and would welcome summary
statement to explain management of the programme year on year, dealing with
slippage, under/over spend and any variations in funding.
• Good examples of cross-cutting work to address corporate and investment
priorities, for example, community safety and regeneration. Positive work to
develop electronic services, such as new tourist information system, and to
sustain rural employment and economies. Look forward to seeing outcomes of
cross-cutting projects currently under development. Potential to set out the key
targets and outcomes expected from capital spending plans.
Rother District Council
Asset Management Plan (AMP) Assessment
2002 - Satisfactory
• Asset Management structure and systems operating to corporately manage a
relatively small portfolio. Good progress to develop data management systems
and report on property status and performance. Scope to demonstrate
outcomes of consultation. The property implications arising from corporate
objectives and plans need to be more specific to demonstrate asset contribution
to service delivery. Potential for AMP to have greater focus on plans to address
future service and asset requirements.
1. Primary Requirements
Organisational Arrangements for corporate asset management
• Corporate Asset Management structure, roles and responsibilities and reporting
links set, engaging a range of officers and members. Would welcome a clearer
statement of the roles and responsibilities of the Corporate Property Officer
(CPO) and evidence that the Corporate Asset Management Team and
Monitoring Group, ensure that AMP links to other key corporate/service plan and
• Sound data management systems in place. Note the alterations and
developments to the system over the last year; and that policies for managing
and updating data are agreed.
Performance Management, Monitoring & Information
• Annual Report to Cabinet about the performance of the property portfolio,
including investment assets and five national property performance indicators
(pPIs). Arrangements in place for informing Cabinet and other key stakeholders
about property performance.
Programme and Plan Development and Implementation
• Clear explanation of the policies for maintaining, retaining, disposing, acquiring
and restructuring asset portfolio, outlining the property requirements and current
• Methodology for corporately prioritising capital projects is in place although not
clear whether a weighting system is applied. AMP would benefit from a clear
summary of the options appraisal undertaken - an illustration of a capital project
appraisal (as an appendix) would be helpful.
• Financial and service output targets are set for capital programmes - could
provide some examples in relation to asset management.
2. Secondary Requirements
Organisational Arrangements for corporate asset management
• Scope to present the whole process of challenging and reviewing the use,
provision and performance of asset and property services more closely. Would
be helpful to show how development of the Annual Marketing Programme,
performance measurement, stakeholder satisfaction information, and developing
an acquisition programme hang together. Scope for AMP to demonstrate that
how CPO takes forward recommendations of Internal Audits and Best Value
Reviews. It is not clear what the timetable for reviewing programmes is, who
leads this work and what the criteria underpinning review is, for example, on
what basis is property identified as ‘surplus to requirements’.
• AMP would benefit from reference to the property asset implications that are
included in key corporate plans and documents, such as the Best Value
Performance plan, and once further developed, the Community Strategy.
Sharing use of assets with other Councils to deliver services more effectively is
positive - scope to link such work and the outcomes to specify corporate/service
• User/Occupier satisfaction surveys and specific consultation on the AMP and
project development is taking place. Look forward to evidence that consultation
is influencing property development and service improvements, for example
development of landscape, lighting and sculpture scheme in Bexhill.
• Continuous development and upgrading of data systems; note that the links to
financial data will be explored. Scope to set out schedule programme of
improvements born out of review of future date requirements.
Performance Management, Monitoring & Information
• A set of local property performance measures are being developed and AMP
should show how they link asset use to corporate objectives. Developing
benchmarking measures through County Property Group - positive approach.
Look forward to seeing how performance measurement/benchmarking results
lead to improvements, for example, targets set, action plans developed, or pPIs
• Categorised asset condition and identified maintenance backlog. Pleased to
note that maintenance date will be updated but not clear how often this will occur
and whether an assessment of the “suitability” of assets is considered. Ten year
maintenance programme will priorities works using “1 - 4” grading system - look
forward to seeing this schedule set out in the AMP.
Programme and Plan Development and Implementation
• Scope for AMP to set out property implications of all Council objectives and
highlight the gaps between current asset and service provision and future
requirements for the Council and Community.
• AMP could set out the scale of the ‘constraints’ (as identified for different
‘categories’ of assets) for managing/developing assets. Gaps in service and
asset provision are being identified, for example, cemetery land. Scope to set
out all such gaps, linked to corporate objectives, and present consideration of
the options to address gaps with an action plan to do this over an appropriate
SINGLE CAPITAL POT GUIDANCE – 2003
1. This paper sets out the guidance for the Single Capital Pot 2003. Allocations
for 2004/5 will be made in December of this year.
PURPOSE AND OBJECTIVES OF THE SINGLE CAPITAL POT
2. The Government wishes to see a clear and transparent process, which
promotes strategic planning and good performance and strikes a balance
between local decision making and the need to meet national priorities. The
single pot should deliver improved outcomes and better services through:
• better planning, by giving greater predictability in funding levels and
allowing more flexibility.
• more autonomy and accountability, and greater responsibility for local
authorities in making their spending decisions;
• better corporate, and strategic, working and more effective tackling of
cross cutting issues; and
• better use and management of assets.
CHANGES FOR THE THIRD ROUND
3. For 2002/03 the amount distributed through the single capital pot represented
just half of the total that could potentially have been directed through the pot.
This increased to about 60% for 2003/04 when other capital resources in
addition to Basic Credit Approvals (BCAs) were added to the single capital
pot. The Government has committed to increasing this to two- thirds by the
end of the spending review period.
4. There will be no ring fencing for those authorities assessed as excellent under
the comprehensive performance framework (other than funding passported
directly through to schools).
5. In line with a broader initiative to ease the plan burden on local authorities, the
requirement to submit capital strategies and asset management plans to
Government Offices for assessment will be relaxed for those authorities
whose submissions in 2002 were assessed as ‘good’. This relaxation will also
apply to authorities given an excellent rating under the comprehensive
6. Authorities will need to continue to produce capital strategies for their own
purposes, in particular as a means of consulting and informing stakeholders.
Once the new prudential system of capital finance is introduced, the capital
strategy will become an essential part of the annual budget setting process. A
robust capital programme will require the bringing together of strategic
planning for the local authority, asset management planning with an
assessment of the state of the authority’s assets, option appraisal,
identification of investment needs including opportunities and priorities, and
setting all this in the context of available capital resources.
7. The intention has always been that corporate asset management plans would
be submitted to Government only until the process was sufficiently well
developed to provide each authority with a robust and effective management
tool. For authorities that received a good standard in 2002, the requirement to
submit plans for assessment will therefore cease.
8. However, all local authorities will still be required to provide the information
contained in the old context sheet, which includes some basic statistical
information including key data on asset numbers, value and condition. This
data will be used to inform and support decisions about local authority
investment needs and priorities in future spending reviews. Local Authorities
will also need to continue to provide returns on property performance
9. The Government will continue to work with local government in encouraging
and supporting further development of asset management planning. Effective
use of assets should be taken into account in relevant best value reviews and
will also continue to form part of the . assessment process in government
inspections as well as the in the comprehensive performance assessment.
10. In view of the increased flexibility available to authorities through the
relaxation of ring fencing the discretionary element of the Single Capital Pot
will be abolished this year.
Timetable for the third round
11. Authorities, who have not yet received a good assessment in either their
Capital Strategy and/or Asset Management Plan will need to submit the
relevant plan/s to Government Offices by 31 July 2003 for assessment.
Government Offices will e-mail authorities at the end of June reminding them
of the closing date for the submission of these documents. Authorities should
note that the deadline can only be extended in exceptional circumstances and
with prior written agreement with the Government Office in advance of the 31 st
July deadline. Capital Strategies and AMPs submitted after 31 st July (or the
extended deadline as may be agreed in accordance with the above
provisions) will not be assessed. Appraisal of plans will take place over the
12. Authorities should receive written feedback showing the areas, which need
development by 19 January 2004. The letters will offer the opportunity of a
meeting or phone conversation to discuss the assessment results. In certain
circumstances Government Offices may seek meetings themselves to discuss
areas where improvement is necessary.
13. A list of names and addresses of Government Office contacts for authorities
to submit their capital strategies and/or AMPs is included at Annex A.
KEY FEATURES OF GUIDANCE
14. The main changes to the system from last year are the removal of the
discretionary element and the expansion of the single pot to include more
than BCAs. More detail is contained in the remaining parts of this guidance
which describe the following elements of the system:
Part 2 – Local Authority Core Data*
Part 3 – Capital Strategies
Part 4 – AMPS
Part 5 – Property Performance Indicators*
Part 6 – Assessment Process
NB: *Please note that all authorities are required to provide this data
15. Copies of this and previous guidance on the single pot are on the Office’s
WHAT YOU WILL NEED TO PROVIDE TO YOUR GOVERNMENT OFFICE
16. Local Authority Core Data (the old Context Sheet) on the local authority,
which will provide high level statistical and financial information as detailed in
17. A Capital Strategy containing a high level summary of the council’s approach
to capital investment. It should be no more than six A4 pages in length, of not
less than size 10 font. Further detail on what is needed is given in Part 3
18. An Asset Management Plan of a maximum of 20 A4 pages in length, of not
less than size 10 font. More detail on what is required is shown in Part 4
19. Information on the 5 national property performance indicators. Further detail
is given in Part 5 paragraphs 55-59.
LOCAL AUTHORITY CORE DATA
Please note that all authorities are required to provide this data
20. This information is required to provide basic information on the size and scope
of the local authority. It is designed to provide statistical and financial
information on assets and capital spending which will help inform government
21. The information should be provided in the order and format shown below:-
i) gross and net revenue budget figures.
ii) information on fixed assets and analysis of fixed assets as per the format
of the consolidated balance sheet in the statement of accounts.
iii) identify the number, gross floor area (GIA), type and value of assets
across the main service areas.
iv) indication of the value of the assessed maintenance backlog across
v) summary capital programme for the next 3-5 years and information on the
source of capital funds with particular reference to level of disposals
anticipated for the period.
vi) identify whether the authority is likely to take on “unsupported borrowing”
following the introduction of the new capital finance system and, if so, to
vii) brief background on area, population and characteristics of the authority
CAPITAL STRATEGIES – DETAILED GUIDANCE
22. The Government wants to see outward-looking local authorities, working with
their communities and partner bodies to identify and act on local priorities to
improve local quality of life. Tackling cross-cutting issues such as
regeneration, social exclusion and sustainable development will need a
joined-up approach across local authority service teams and tiers of authority,
involving social care, education, housing, transport, strategic planning,
consulting with the community to meet customer needs and wishes.
23. In working towards these goals the Government is committed to seeing the
best possible use made of public sector assets and to tackling under-
investment and weak management wherever it exists.
Purpose of the capital strategy
24. Every council will have a set of policies that, implicitly or explicitly, determine
its priorities and approach to capital investment. Often these policies will
originate in specific services – and be expressed in terms of service
outcomes, rather than relating directly to investment. The capital strategy
should describe how the deployment of capital resources contributes to the
achievement of these goals. A coherent, well-expressed, and well-
understood capital strategy is vital to ensure that assets – and the resources
tied up in them – are efficiently and effectively used. It will help ensure that
issues around property and other assets are fully reflected in the council’s
Establishing the capital strategy
25. The starting point should be an authority’s key objectives and priorities, which
will be informed by the community strategy (in those authorities that have
already prepared this document). The community strategy should be drawn
up in conjunction with a local strategic partnership of representatives from the
local authority and other public sector organisations, local businesses,
community and voluntary groups. The strategy should reflect the visions and
aspirations of local people, contribute to sustainable development in the UK
and outline a plan for the delivery of these objectives.
26. The capital strategy should show how capital investment contributes to the
achievement of the council’s objectives. It should be a key document for the
authority, which pulls together the strategic capital requirements emerging
from service strategies. It will determine priorities between the capital needs
of the various services and look for opportunities for cross-cutting, joined-up
investment. The strategy statement should not duplicate detailed information
on strategies for particular services, though clearly there should be
consistency. Priorities identified by local strategic partnerships in their
Community Strategies and, where relevant, their neighbourhood renewal
strategy should be taken into account in the capital strategy.
What you will need to provide to your Government Office
27. The GO will require a high level summary of the council’s approach to capital
investment. It should be no more than six A4 pages in length, of not less than
size 10 font. If possible, it should be submitted in electronic format. It should:
a) highlight the key priorities and targets for the council including the
delivery of national PSA targets
b) list key partners, and show how you involve the Local Strategic
c) illustrate how the council is working corporately and with others to
achieve key cross-cutting outcomes
d) explain the approach to prioritising investment
e) explain how the council monitors and evaluates progress and includes
the role of members and the corporate management team in this
28. Authorities may wish to provide the government office with copies of other
relevant documents linked to the capital strategy such as their community
strategy, the best value performance plan (to provide the background and
context to the authority’s improvement plans and to identify where property
reviews are planned), the neighbourhood renewal strategy or a strategy
provided under the LGA’s New Commitment to Regeneration. The Capital
Strategy itself should clearly explain the relevance of any cross-referencing to
other plans, strategies or reports.
What should the capital strategy cover?
29. The capital strategy should provide an overview of the authority to provide
statistical and financial information on assets and capital spending plans.
30. The capital strategy should consider all aspects of capital expenditure within
the authority and extend to areas where an authority is able to apply
significant influence on others through the use of its capital resources.
31. It should take into account the revenue implications of capital investment,
where these are significant.
32. It should identify how a framework for the management and monitoring of the
capital programme has been put in place.
33. It should inform bidding for additional capital resources and the management
of successfully won resources (e.g. from EU funds, the RDA fund or the
National Lottery) and the council’s approach to the PFI and Public/Private
34. It should address corporate wide policies on procurement strategy as
envisaged in best value guidance. Corporate commitment to modern methods
of construction procurement can lead to significant improvements in the
efficiency and quality of delivery of construction projects. “Rethinking
Construction”, the report of the Construction Taskforce chaired by Sir John
Egan stated that such improvements are not only possible but vital. Major
clients (especially Government – both central and local) must give leadership
and initiate changes in construction and procurement practices. The Local
Government Construction Task Force (www.lgtf.org.uk) has been put in place
to help local authorities achieve these improvements.
35. It should also be recognised that best value is not simply achieving the lowest
price. It should be based on whole life costs where the ongoing revenue
implications of capital expenditure are considered in commissioning works.
36. It should identify the development and implementation of processes for:
• The generation and option appraisal of capital project proposals
• Prioritisation of capital project proposals
• Monitoring, evaluation of ongoing/ completed projects
• Corporate review of existing properties and service needs to explore
- for more efficient and effective use of property, or
- to release resources through disposal.
37. The capital strategy should form an integral part of the strategic financial and
service planning that will become part of the annual budget setting process
and support decisions on a local authority's capital investment under the
prudential system. Local authorities will need to integrate their capital and
revenue budget planning processes so that coherent decision making can
take place on the level of borrowing that is prudent, affordable and
sustainable for the authority. Decisions to take on additional borrowing will
flow from an analysis of the strategic assessment of the authority’s present
asset base, identification of investment needs, prioritisation of those needs set
within the context of available capital resources including capital receipts,
capital grant and revenue contributions.
Links to partners and the community
38. Potential partners include: representative bodies of the local community and
voluntary groups, local strategic partnerships, black & ethnic minority
organisations, tenants, residents and schools, registered social landlords,
health authorities, health and primary care trusts, the police, the private sector
and business community. Authorities could work with these partners
individually, but also collectively through the local strategic partnership, which
these groups and organisations should be a part of.
39. The strategy should give examples of steps being taken to work with other
councils, for instance co-operation between neighbouring districts, counties,
or parish councils, and other bodies such as health authorities. For example,
the strategy might point to use of new powers under the Health Act 1999 to
enable pooled budgets, lead commissioning and integrated provision or the
wellbeing powers contained in the Local Government Act 2000.
Links to service plans and best value reviews
40. Under best value, authorities are required to undertake fundamental reviews
of their functions. A best value review may result in new objectives for the
use of existing property and for new investment. The capital strategy should
reflect the authority’s improvement planning arrangements, including
proposals for implementing the outcomes of best value reviews, CPA and
other audit and inspection recommendations. It is also vital that the existing
capital strategy informs and is informed by reviews and service decisions.
Revising the capital strategy
41. Once a good quality capital strategy has been produced it should be reviewed
and updated annually by the authority.
GUIDANCE ON ASSET MANAGEMENT PLANNING
42. The AMP is the corporate document detailing existing asset management
arrangements and outcomes and planned action to improve corporate asset
use. The process will provide the means by which the designated Corporate
Property Officer (CPO) is able to define and provide for the longer-term
corporate need and challenge existing asset use. The AMP document will set
out the refining process as the longer-term use of corporate assets develops.
The preferred maximum length for this document is 20 A4 pages of not less
than size 10 font.
43. A capital strategy covers all aspects of an authority’s capital expenditure, and
its overall revenue implications. The AMP covers the authority’s property
interests in its operational and non-operational land and property but
• the details of housing and education assets as contained in the authority’s
Housing Business Plan and Education AMP
• highways and transport infrastructure, vehicles, plant and equipment
Corporate requirements of the AMP/role of the CPO
44. The CPO role continues to develop, as does the corporate asset management
function. CPOs need to address the role and contribution of the authority’s
property assets as a corporate resource supporting the delivery of corporate
and service objectives, including the authority’s priorities for improvement.
There needs to be a clear understanding of the authority’s business and
service aims supported by a clarification of how and when the asset base
contributes to these aims.
45. The CPO will also need to consider the major corporate drivers for future
change and what are or will be the 'knock on' effects for asset management.
They will need to set out a programmed and planned approach for dealing
with anticipated changes and put in place a system to ensure that the adopted
approach can be achievable, is fully costed and fully appraised.
46. The CPO will use the AMP document to help to plan ahead for the corporate
use and provision of the authorities assets, to take into account the revenue
consequences of corporate capital decisions and to consider whole life costs
and project appraisal.
47. The CPO is responsible for putting the necessary asset management
processes into place to produce the property performance and outcomes that
the authority needs.
48. The requirements of the capital strategy and the AMP will drive the CPO to
develop and implement performance measures that are directly relevant to
the authority’s actual requirements and priorities. Greater and more effective
use should be made of local performance indicators as well as the national
pPIs. These requirements will be reflected in the assessment criteria.
Format of the asset management planning document
49. All authorities should now have basic information on the assets they hold
including the condition of their property portfolio. It should now be possible for
the CPO to assess what further action is needed and the timetable to be
50. Building on previous guidance, the headings under which the AMP should be
structured are as follows:
a) Organisational Arrangements for Corporate Asset Management
b) Consultation- how stakeholders views inform the asset management process
c) Data Management-how asset data is collected, recorded , managed and used
to support performance management
d) Performance Management and Monitoring- how asset management
information is used to deliver performance improvements and linked to
corporate and service performance objectives
e) Programme and Plan Development and Implementation- including option
assessment and project appraisal, property review and rationalisation, 3-5
year capital programme, maintenance programmes, acquisition plans, etc
f) Performance Information- in relation to national pPIs and any other local pPIs.
Content of the AMP document
51. The development work on the AMP process should be proportionate to the
scale of the property managed and number of assets held. However, all
authorities are required to demonstrate good asset management and produce
the required documentation. Where the property portfolio is small it must still
be managed to the highest standards of best practice. Proportionality is likely
to reduce the sophistication of the AMP system but not the corporate process.
Proportionality has been introduced to recognise that some of the more
detailed assessment criteria for those Local Authorities with an asset base
falling below a defined size may not be appropriate.
52. Service plans will provide valuable information for the development of the
AMP. While it is not necessary to repeat the detailed information contained in
service plans, where any particular area makes up a significant part of the
assets held a summary of the information should be provided.
53. Service plans are unlikely to contain all the property information necessary for
the AMP and the CPO will be expected to recover any shortfall in these
regards for the purposes of strategic asset management.
54. A table showing the CIPFA categories is at Annex B.
THE PROPERTY PERFORMANCE INDICATORS (pPIs)
*Please note that all authorities are required to provide this data
55. The five high level property Performance Indicators (pPIs) are set out in table
format in Annex C.
56. The pPIs have been developed to provide a standard set of data against
which authorities can measure not only their own performance year on year,
but also to provide a set of data that can be benchmarked nationally. At this
stage they should only be used in respect of property assets as indicated.
Highways and transport infrastructure, vehicles, plant or equipment should be
57. The information resulting from the five high level pPIs is to be reported to your
Government Office either with the submission of the AMP or, if this is not
required, with the submission of the local authority core data.
Assessment of the pPIs
58. The information resulting from the indicators and all other relevant local
performance measures should be reported to the authority’s Chief Executive,
corporate management team, the council and the Office as part of the AMP
process. Furthermore, the information should be used to assist the CPO to
continually challenge, review and evaluate the holding and performance of
59. The pPIs will enable authorities to provide standardised information against
which they can measure their performance year on year and which can be
used to “benchmark” against other authorities and private companies.
60. Single Capital Pot allocations will be made in December 2003 for 2004/05.
There will be no discretionary element for 2004/05 or in future years.
How will capital strategies and AMPs be assessed?
61. Councils’ capital strategies and asset management plans will be submitted to
Government Offices and be assessed by GO staff with support from officials
of other relevant government departments. A simple range of gradings –
“good”, “satisfactory” or “poor” - will be applied separately to the capital
strategy and the AMP.
Assessment of Capital Strategies
62. The quality of capital strategies will be judged against pre-set assessment
criteria split into primary and secondary categories. Authorities must comply
with all of the primary requirements or the strategy is rated as “poor”. If the
primary criteria are met the assessment will progress to the secondary
requirements. If fewer than 8 (75%) of these criteria are met, the authority
gets a “satisfactory” rating. If 8 (75%) or more of the criteria are satisfied with
at least one criterion from each group, then the authority scores a “good”
63. The criteria for assessment are set out in Annex D grouped into the primary
and secondary requirements.
Assessment of AMPs
64. The quality of asset management plans will be judged against pre-set
assessment criteria split into primary and secondary categories. Authorities
must comply with all of the primary requirements or the strategy is rated as
“poor”. If the primary criteria are met the assessment will progress to the
secondary requirements. If fewer than 19 (75%) of these criteria are met, the
authority scores a “satisfactory” rating. If 19 (75%) or more of the criteria are
satisfied with at least one criterion from each group, then the authority scores
a “good” rating.
65. The criteria for assessment are set out in Annex E grouped into the primary
and secondary requirements.
ODPM WEB-SITE = www.local-odpm.gov.uk
PAPER COPIES OF SINGLE CAPITAL POT DOCUMENTATION
PAUL ANDREWS - 020 7944 4244 Email = firstname.lastname@example.org
PETER HART – 020 7944 3370 CHRIS HOWSHAM - 020 7944 3140
Email = email@example.com Email = firstname.lastname@example.org
GOVERNMENT OFFICE CONTACTS
NAME AND G.O ADDRESS PHONE NUMBER E MAIL
IAN WHITE The Belgrave Centre 0115-971-2678 Iwhite.goem@go-
Stanley Place regions.gsi.gov.uk
GO-EM Talbot Street
ARNOLD LEE Cunard Building 0151-224-2940 Alee.gonw@go-
GO-NW Pier Head regions.gsi.gov.uk
Liverpool. L3 1QB
JOHN MONKS 8th Floor 020-7217-3285 Jmonks.gol@go-
Riverwalk House regions.gsi.gov.uk
GO-L 157-161 Millbank
IAN LONG LG & Housing Team 0117-900-1178 Lgh.gosw@go-
GO-SW 1st Floor, 2 Rivergate
BRISTOL BS1 6ED
JOHN TAYLOR Wellbar House 0191-201-3658 Jtyaylor.gone@go-
GO-NE Newcastle upon Tyne
JOHN F PO Box 213(CH) 0113-283-6427 JFJTaylor.goyh@go-
TAYLOR City House regions.gsi.gov.uk
GO-YH New Station Street
Leeds. LS1 4US
TIM BARBER Local Government 01223 372542 Tbarber.go-east@go-
Cambridge CB2 2DF
SURJIT 77 Paradise Circus 0121-212-5049 Smatharu.gowm@go-
MATHARU Queensway regions.gsi.gov.uk
GO-WM B1 2DT
GLENN AUSTIN Bridge House 01483-882496 Gaustin.gose@go-
1 Walnut Tree Close regions.gsi.gov.uk
Surrey GU1 4GA
The tables set out below illustrate the categorisation of various types of property in
line with the CIPFA categories (in bold). One separate category has been
established within non-operational property to show surplus / disposal property.
Council Dwellings Other Land & Buildings Infrastructure Community
Housing Schools Roads Parks
Libraries Sea defences Works of art
Residential Homes and Day Centres Bridges Museum exhibits
Cemeteries & Crematoria (buildings only) Permanent ways Cemeteries &
Sports centres and pools Water and drainage Civic regalia
Offices, administrative buildings and land Street furniture,
associated with administrative buildings fixtures and fittings
Museums and galleries
Property used for or in direct support of
Other housing (HRA) property & Non HRA
Land associated with operational
Off Street Car Parks / park & ride
Non-operational (general) Surplus Property
Tenanted Farms / smallholdings)
Property released by a service and
awaiting alternative use.
Commercial starter units; Industrial property; Warehouse property
(note 1) Buildings declared surplus
Depots 3rd party use (note 2)
Shops on housing estates; Retail units Land declared surplus assets
Workshops 3rd party use
Historic Buildings - 3rd party use
Land under construction
Mooring sites & rights / Dockland / Slipways
If these properties are held for investment purposes, they are non-operational. However, if
they are held with particular service objectives in mind they are operational. An example is
the holding of industrial or commercial starter units in furtherance of particular economic
Categorisation of these properties will depend on the individual circumstances in each case.
If the 3rd party uses them to provide the authority’s services, then they are operational.
PROPERTY PERFORMANCE INDICATORS
OBJECTIVES • To measure the condition of the asset for its current use.
• To show the severity and extent to which maintenance
problems affect the portfolio.
• To show year-on-year changes in maintenance backlog.
• To provide information on the overall condition of the
Local Authority estate
INDICATOR: A % gross internal floor-space in condition categories A –
B Backlog of maintenance by cost expressed i) as total
value and ii) as a % in priority levels 1 – 3.
DEFINITION • Backlog is defined as “The cost to bring the building from
its present state up to the state reasonably required by
the authority to deliver the service or to meet statutory or
• All Freehold and Leasehold property where the authority
has a direct repairing obligation.
• Excluding Housing and Schools
• To be reported by main CIPFA category (Operational
[other land and buildings], Non-operational general, non-
operational surplus). See attached CIPFA categories at
• To be calculated for buildings. Land should also be
included where it lies within the site curtilage and is an
integral element of the building (e.g. parking necessary
for office use). In these circumstances, the condition of
the land should only be taken into account in assessing
the condition of the building and the backlog
maintenance cost, its area should not be included.
• Any de minimis used for condition surveys to be clearly
• Floor space to be calculated as the gross internal area
(GIA) in accordance with the RICS Code of Measuring
• Definition of condition categories and priority levels:-
A: Good – Performing as intended and operating
B: Satisfactory – Performing as intended but showing minor
C: Poor – Showing major defects and/or not operating as
D: Bad – Life expired and/or serious risk of imminent failure.
1: Urgent works that will prevent immediate closure of
premises and/or address an immediate high risk to
the health and safety of the occupants and/or remedy
a serious breach of legislation.
2: Essential work required within two years that will prevent
serious deterioration of the fabric or services and/or
address a medium risk to the health and safety of the
occupants and/or remedy a minor breach of the
3: Desirable work required within 3 to 5 years that will
prevent deterioration of the fabric or services and /or
address a low risk to the health and safety of the
occupants and/or a minor breach of the legislation.
NUMBER 2A, B & C
OBJECTIVE To demonstrate the justification, in financial terms, for
retaining a non-operational – investment portfolio. It will
ensure accountability for investment decisions illustrating the
financial advantages and disadvantages of holding /
disposing of assets in the portfolio.
INDICATOR Overall average internal rate of return (IRR) for each of
the following portfolios: (a) Industrial, (b) Retail (c)
Agricultural investment property.
DEFINITION IRR calculated in accordance with DCF techniques based
upon a 10 year projected cash flow period or the remainder
of the existing property interest, whichever is the shorter.
To exclude investment property let on leases for periods
over 21 years provided that:-
- Such leases either have no provision for rent
reviews, or provision for reviews at intervals of
25 years or more;
- The CPO has in place a programme for
reviewing and reporting to members the
performance of such long-lease property and
the justification for retaining and disposing of
It is recognised that non-operational investment property is
held for social as well as investment use and these reasons
can be set out within the AMP document. This indicator
should apply to those properties that the Corporate Property
Officer deems to be held primarily for investment purposes.
The Agricultural estate includes County farms,
Smallholdings, and agricultural land.
The information will enable continual review of the
appropriateness of retention, restructuring, acquisition or
disposal of investment assets through:
• Monitoring the performance of the investment portfolio
• Comparison of the performance of the investments held
• Opportunity cost comparisons (e.g. PWLB loan rate;
The Authority will need to indicate in the AMP how it is
using the IRR information to review to challenge and
improve the performance of retained non-operational
investment assets. A demonstration of the calculation has
been placed on the ODPM Website:
OBJECTIVE To measure the cost and efficiency of property services
INDICATOR: 3 Total annual management costs per sq. m (GIA) for the
DEFINITION • The Indicator covers the strategic management of the
- Corporate preparation of both AMP and CS
- Preparation of other property related
programmes and strategies;
- Corporate management of programmes (Not
the management of projects)
- Condition & suitability surveys, (not including
the carrying out of surveys)
- Data management (not including data entry)
- Option appraisal, prioritisation;
- Input to service reviews;
- Corporate property reviews (prior to decisions
on disposals reuse etc)
• A reasonable assessment of staff time should be made
where the person spends less than their full time on the
• Management costs to be reported per sq. m GIA as an
NUMBER 4 A, B, C & D
OBJECTIVE To encourage efficient use of assets over time and year-on-
year improvements in energy efficiency.
INDICATOR: A Repair & maintenance costs per sq. m GIA
B Energy costs per sq. m GIA (gas, electricity, oil, solid fuel)
C Water costs per sq. m GIA
D CO2 emissions in tonnes of carbon dioxide per sq. m
DEFINITION A • To be reported for operational buildings (excluding
Housing and Schools) occupied by the LA
• Repair and maintenance is the total maintenance
programme (responsive and programmed) including any
associated fees for the works.
DEFINITIONS • To be reported for operational buildings (excluding
B&C Housing and Schools) occupied by the LA
DEFINITION D • This indicator to focus on energy consumption rather
• CO2 emissions data will fit with the UK’s Climate Change
• To be reported for operational properties occupied by the
LA (excluding Housing and Schools, which are subject to
• Further information on this calculation can be obtained
The Energy Efficiency Best Practice Programme:
The Environment and Energy Helpline: 0800 585 794
OBJECTIVES • To measure and monitor the performance of the whole
authority in the delivery of capital projects in terms of
cost and time predictability.
• To impact on the prioritising process for projects and the
associated local performance measures and monitoring
systems put in place
INDICATOR: A % of projects where outturn falls within +/- 5% of the
estimated outturn, expressed as a %age of the total number
Cost Predictability of projects completed in the financial year.
(Comparison of estimated outturn project costs at “commit to
invest” with actual outturn cost at end of defects liability
B % Projects falling within +5% of the estimated timescale,
expressed as a % of the total number of projects completed
Time Predictability in that financial year.
(Comparison of estimated timescale against actual
DEFINITION • Applies to all new single capital projects (excluding
highways and IT) over £50,000 for large asset base
authorities – County, Metropolitan Boroughs, and Unitary
authorities – and over £25,000 for District / Borough
• Applies to projects where the LA is the sole or majority
“Outturn projected costs” = final cost of construction work
(including value of contractual claims, inflation etc) + cost of
professional fees and statutory costs.
“Commit to Invest” = as Construction Best Practice
definition, “The point at which the client decided in principle
to invest in a project, sets out the requirements in business
terms (programme and costs) and authorises the project
team to proceed with the design” (Commencement of RIBA
B work stage C).
“Time Predictability” = measure difference between ‘A’ and
‘B’ where, ‘A’ = the Duration from “Commit to Invest” to
Practical completion as estimated at “Commit to Invest”. ‘B’
= actual duration from “Commit to Invest” Practical
“Commit to Invest” = as for Cost predictability
CAPITAL STRATEGIES: ASSESSMENT CRITERIA
The Capital Strategy (‘the Strategy):
1. provides clear strategic guidance about the council’s capital objectives, priorities
and spending plans and demonstrates that these are directly linked to and
consistent with key corporate and service objectives as outlined in the authority’s
corporate documents (for example, the Community Plan, Housing Strategies,
Education Development Plans, Social Services strategies, Local Transport Plan,
Cultural Strategies, the AMP, and the DfES AMP). It should identify council wide
cross-cutting activity and initiatives.
2. describes the framework that the authority has put in place to ensure that the
capital strategy is a corporate document.
3. identifies all key aspects of capital expenditure within the authority and those
areas where the authority is able to apply significant influence on others through
the use of its capital resources
4. explains the approach implemented in the prioritisation of capital project
5. explains how the revenue implications of capital investment are taken into
6. is informed by the outcomes of best value reviews, and of other relevant reviews
and improvement/development plans.
7. identifies how relevant stakeholders’ and partners’ views are sought and inform
the working and development of the capital strategy.
8. Identifies key partners and describes partnership working.
1. sets out sufficient information to inform all bidding for capital resources.
2. outlines the council’s approach to PPP/PFI and to other means of alternative
3. addresses corporate policies on procurement strategies as envisaged in best value
guidance (e.g. in the report of the Construction Task Force, chaired by Sir John
4. The strategy identifies how partnership working is being further progressed by
steps being taken to work with other councils and relevant organisations (for
example, capital projects in co-operation with neighbouring councils, local
primary care trusts, voluntary sector and private sector).
Performance measurement and monitoring
There is evidence that:
5. performance measures and benchmarking are being used to describe and
evaluate how the deployment of capital resources contributes to the achievement
of corporate and service objectives.
6. the results of performance measurement and benchmarking are being
communicated to Stakeholders where relevant.
7. the results of performance measurement and benchmarking are being used to
seek service improvements and target service delivery
8. performance measurement activities relate to capital projects and to the influence
of grants and partnerships
9. There is a corporately agreed 3 year strategy explaining the council’s approach
regarding the effective management, measurement and monitoring of the
council’s capital programme.
There is evidence of:
10. The development and/or delivery of key priorities and targets to achieve
cross-cutting objectives such as regeneration and sustainable development
11. There is evidence of cross-cutting activity leading to improved outcomes,
including consideration of and where appropriate adoption of innovative
solutions (for example, in the use of new technology; in the shared use of
accommodation; in the provision of more customer focused service delivery)
To obtain a Good Assessment, one factor in each group of secondary criteria
must be met.
ASSET MANAGEMENT PLANS: ASSESSMENT CRITERIA
1. Organisational arrangements for corporate asset management
1.1 A Corporate Property Officer (CPO) has been identified with authority to
undertake all required developments in asset management.
1.2 Roles and responsibilities for the CPO (as indicated by the prevailing
guidance) are clearly set out, explicit and have been communicated to all
those concerned, in property management and use, throughout the authority.
1.3 The CPO reports and is accountable to a strategic, decision-making group
both at officer and member levels.
1.4 Clear evidence has been provided that a cross-service, senior management
forum has been set up which includes the CPO, representatives from major
services and, where appropriate, the finance directorate and officers involved
in the development of the Capital Strategy and the Community Plan (or its
1.5 The forum has formal terms of reference that includes the strategic
management of the council’s assets.
1.6 Evidence that the forum:
- progresses the corporate Asset Management Plan and ensures that it is
approved by senior officers and the Council;
- ensures that the AMP is informed by and supports other key corporate and
service plans and objectives;
- meets regularly (at least twice a year or more often as may be
2. Data Management
2.1 CPO has ensured that a record is held and maintained of basic, core data on
all the Council's property.
2.2 The validity of this information has been tested.
2.3 AMP can demonstrate a clear understanding of the data required to manage
the performance of the property portfolio.
2.4 Statistical information on the overall condition of the portfolio (condition
categories: A-D/1-4) and maintenance backlogs is included in the AMP.
3. Performance Management, Monitoring & Information
3.1 The CPO submits a formal report to Members and Chief Officers at least
annually on the performance of the property portfolio, which now includes
performance outcomes in relation to the ODPM National pPIs.
3.2 The AMP includes information showing how the authority is performing in
relation to all five national pPIs.
3.3 Members are informed, as part of overall budget and performance monitoring,
of the progress and performance of the capital programme.
4. Programme and Plan Development and Implementation
4.1 The AMP outlines the council’s property related requirements and outlines the
proposed programmes which are intended to meet these requirements. (For
example: acquisition, disposal, investment, development; maintenance;
programmes related to surplus and/or under-performing assets; plans
enabling shared use and/or co-location.)
4.2 CPO has demonstrated that there is a methodology for option appraisal and
corporate prioritising between projects.
4.3 A 3 year capital programme is developed including a forecast of the planned
4.4 Output/outcome targets are set for programmes and plans requiring capital
Organisational arrangements for corporate asset management
1. Evidence that the CPO / Asset Management Forum routinely challenges and
reviews the use, provision and performance of the council’s assets and its
related property services, in order to achieve the most effective management,
planning and use of these assets. Key findings and outcomes are reported to
Chief Officers and the Council. Examples can include:
the identification and rationalisation of surplus or under-performing
the promotion of shared use or co-location;
the systematic review and challenge of property use, provision and
Identification of the property implications arising from relevant plans,
audits and reviews.
2. Evidence that the CPO / Asset Management Forum takes into account
stakeholder satisfaction information relating to property and property services.
3. A cabinet member (or lead committee member) holds responsibilities for the
authority’s property resource on behalf of the council.
4. The CPO is involved in the preparation of the Capital Strategy and contributes
to the work of other relevant corporate and business planning groups.
5. There are references to the property asset implications in corporate policies
and strategies such as the Best Value Performance Plan, Best Value
Reviews, the Capital Strategy, the Community Plan and LPSAs.
6. There is evidence of cross service use, shared use and/or co-location of
property resources within the authority and with other organisations.
7. Evidence that processes are being developed to obtain feedback from
services, users and occupiers.
8. Evidence that consultation findings are used to influence the continuous
improvement of property and property services performance.
9. CPO has undertaken a full survey of future data requirements for the property
10. CPO has identified a programme of necessary improvements
11. CPO has commenced development of a data system for “intermediate” data
(i.e. property data which requires updating from time to time such as
condition, rents and user details)
12. CPO has implemented Unique Property Reference number (UPRN) system or
set out detailed reasons why any alternative property referencing approach is
considered more appropriate.
13. CPO has developed an approach for the centralised co-ordination of property
management information and its integration with relevant council financial
14. CPO has undertaken a review of training needs for users of the data and set
in place a system for satisfying those needs.
Performance Management, Monitoring & Information
15. Clear evidence that the CPO is developing and using a set of local
performance measures in relation to assets that link asset use to corporate
16. Clear evidence that the CPO is developing a process to enable the
comparison of the performance and competitiveness of property and property
services with other similar organisations and other providers.
17. Clear evidence that the development of performance measures and
monitoring takes into account stakeholder consultation and user satisfaction
18. Clear evidence that performance measurement feeds into a process of
19. Local Performance Indicators are in place and being used for measuring and
monitoring the amount of surplus property and space utilisation.
20. A written report is produced for Members and Chief Officers on any
maintenance backlog recommending appropriate action.
21. The CPO is collecting information on the “suitability” of the various categories
of the portfolio for their current and future use.
Programme and Plan Development and Implementation
22. The AMP demonstrates that the Council has identified the implications for
property, which arise from the Council’s objectives.
23. The AMP demonstrates service wide understanding of corporate ownership of
24. The AMP demonstrates that the Council has undertaken a thorough
investigation and analysis of the gaps between future requirements and the
current provision and performance of the authority’s present property assets.
25. The Council has identified and appraised the options for closing these gaps.
26. The AMP outlines the Council’s approved 3 – 5 year strategic action plan
based on this analysis.
To obtain a Good Assessment, one factor in each group of secondary criteria
must be met.